Equality and Reputation
Thanks to protests around the world and impressive citizenship efforts by certain large companies in May and June, the topics of equal justice and inclusiveness are front-page news stories today, which is leading to growing expectations for equality and fairness in the workplace. And yet, our global trends study also showed that most companies are falling short in this regard. Inequality can have a detrimental effect on a business—not being perceived as inclusive or diverse enough is a significant risk that can average around a 15-point decrease in overall Reputation Score (on a RepTrak Score rated from 1-100).
No surprise, then, that encouraging and enabling equality, diversity, and inclusion can be good for business. According to global RepTrak data, there is a .95 statistical correlation between how stakeholders assess a company on its commitment to environmental impact, social performance, and governance standards (ESG) and whether they trust that company to do the right thing. Just as important, there is a .93 statistical correlation between a company’s ESG perception score and whether they would recommend that company to others. These high correlations are not to be ignored.